Online Loans: Technology is Changing Small Business Lending
With the global rise of fintech innovation, Canada has been no exception – over the past year alone, the Canadian market has seen a new crop of alternative lenders emerge on the scene, making it easier for small businesses across Canada to access the funds they need.
With advancements in technology, the online loan process is now exceptionally easier for small business owners. While banks can take 4-6 weeks to process an application, online business loans can be approved instantly, and in the case of Lendified, the money is transferred within 1-2 business days. Another upside to small business online loans is that they are paperless – there is no scavenger hunt to collect documents and no papers to physically sign. With these technological efficiencies, small business owners can get back to what matters, running their enterprise, faster and smarter.
One of the most important improvements facilitated by technology-driven online lending is overall fairness in the borrowing process. Studies have shown that minority groups have felt slighted in the loan application process at traditional banks. Countless studies have reported that female entrepreneurs were more likely to encounter rejection or difficulty in applying for a loan, and that access to capital was one of the biggest challenges faced by female small business owners in Canada.
Technology removes the human bias. Algorithms enable online lenders to analyze thousands of data attributes related to you as the business owner - your business, your industry, and key markets that are reflective of your business’ credit performance. The online loan process at Lendified looks at the big picture of who you are and your small business.
At the end of the day, technology should make things simpler, not more complicated, especially when it comes to small and medium enterprise solutions. Access to a short-term small business loan – to take advantage of an opportunity or overcome a short-term obstacle – shouldn’t be time-consuming or unfair. Canada is ready for online loans to shoot the balance and change the game.
The Lendified story began because we saw a substantial gap in the market between small businesses and access to funding. That didn’t sit right with us. As a provider of Canadian online loans we have a vision to change this significantly by providing small businesses, like yours, with a streamlined online loan process that is safe and convenient.
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About the Author
Lendified is Canada's premier online lender for small businesses. The company was founded by former bank executives dedicated to provide businesses with fast, easy, and affordable financing. The Lendified team regularly produces blogs and guides to help small business owners succeed.